Technical Analysis USDDKK : 2021-08-09

On the daily timeframe, USDDKK: D1 came out of a long-term downtrend. A number of technical analysis indicators have generated signals for further growth. We do not rule out a bullish movement if USDDKK rises above its latest high: 6.33. This level can be used as an entry point. Initial risk limitation is possible below the Parabolic signal, 2 last lower fractals, lower Bollinger band and 200-day moving average line: 6.24. After opening a pending order, move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit / loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (6.24) without activating the order (6.33), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis

The US dollar is strengthening after the publication of data on the labor market. Will the USDDKK quotes grow?

In July, the number of new U.S. jobs nonfarm payrolls increased by 943 thousand. This is significantly more than the forecast of 870 thousand. Earlier, Federal Reserve Vice Chair Richard Clarida said that the rate hike could take place at the end of next year, subject to the recovery of the American labor market. Because of this, economic data caused a noticeable increase in the US dollar index. The yield on the US government’s 10-year Treasury note soared to 1.3% on Friday from 1.23%. Investors are awaiting new statements on tightening monetary policy at the Fed symposium in Jackson Hole, which will be held at the end of August this year. The dynamics of the US dollar may be affected by inflation data, which will be released on August 11. In turn, industrial production in Denmark fell by 2.3% in July compared with June. The dynamics of the Danish krone may be affected by the publication of data on the trade balance and current account balance (Current Account) on August 9, as well as on inflation in Denmark (August 10).